Brand Equity

BRANDING
 BRAND
• The word "brand" is derived from the Old
Norse brandr meaning "to burn”.

• Ownership of livestock (Stamping with Hot Iron)

 What is a brand?
A product is anything that is capable of
satisfying consumer needs.

A brand gives a product a distinctive identity

through the creation of a name, design or,
more usually, some combination of these.
Brand reflection

Consumers use brands to

Reflect their self-identity
And project it to other
people
 Brand Equity
(Kevin Keller , 1993]

• The differential effect of brand knowledge on

consumer response to the marketing of the
brand.

• The differential effect of brand knowledge on

consumer response to the marketing of the
brand.
VS
 Positive Brand Equity at Play…
Blind %

Prefer Diet Pepsi 51

Prefer Diet Coke 44

Equal / Can’t say 5

 Positive Brand Equity at Play…
Blind % Open %

Prefer Diet 51 23
Pepsi
Prefer Diet 44 65
Coke
Equal / Can’t 5 12
say
 Brand Knowledge

• Brand Awareness

• Brand Image

Kevin Keller, 1993

 Brand Knowledge
• Brand Awareness:
• Brand Recognition
– Consumer’s ability to confirm prior exposure to the brand
when given the brand as cue. Brand recognition requires the
consumers correctly discriminate the brand as having been
seen or heard previously.

• Brand Recall
– Consumer’s ability to retrieve the brand when given the
product category.

Kevin Keller, 1993

Brand Recognition
Brand Recognition
 Brand Recall

• Car • University
• Toyota • Quaid-e-Azam
• Honda University
• Mercedes • NUST
• Suzuki • COMSATS
• Bahria University
 Brand Knowledge
• Brand Image:
• Perceptions about a brand as reflected by the brand
associations held in consumer memory. Brand
associations are other informational nodes linked to the
brand node in memory and contain the meaning of
brand for consumers.

• The favorability, strength and uniqueness of brand

associations are the dimensions distinguishing brand
knowledge that play an important role in determining
differential response that makes up brand equity.

Kevin Keller, 1993

 N
B N
N N

N N
N
 Brand Knowledge
• Brand Image
• Brand Associations:
– Attributes
» Product related
» Non product related
• Packaging
• Price
Strongly
• User Imagery (What type of people use it) depends on
• Usage Imagery (Where and what type of word of
mouth and
situation the product is used in) advertising

Kevin Keller, 1993

 Brand Knowledge
• Brand Image
• Brand Associations:
– Benefits
What consumer/customer think the product or service can do for them.
» Functional Benefits
• These benefits are linked with basic motivations such as
physiological and safety needs and involve desire for problem
removal (Usually intrinsic in nature and product related)
» Experiential Benefits
• Relate to how it feels like to use a product or service. These
benefits satisfy experiential needs such as sensory pleasure,
variety and cognitive simulation (Also correspond to product
related attributes)
» Symbolic Benefits
• Extrinsic advantages focusing on non-product related attributes
and relate to needs for social approval and self esteem.

Kevin Keller, 1993

 Brand Knowledge
• Brand Image
• Brand Attitudes
– Consumer’s overall evaluation of a brand.
– Attitudes are effected by the salient beliefs a consumer has
about the product or service and evaluative judgement of those
beliefs i.e. how good or bad is that the brand has those
attributes or benefits.

Kevin Keller, 1993

 Brand Knowledge
• Brand Image
• Thus different types of brand associations making up the
brand image include product related and non product related
attributes; functional, experiential or symbolic benefits and
overall brand attitudes (feelings).
– Favorability
» The success of a marketing program is reflected in the
creation of favorable brand associations i.e. in consumer’s
believe the brand has attributes and benefits that satisfy their
needs and wants such that a positive overall brand attitude is
formed.
– Strength
» Strength of connections the brand node
– Uniqueness
» Associations which may or may not be shared with
competing brands (positioning – unique selling proposition)

Kevin Keller, 1993

 Revision in Keller’s Brand Equity Model
[Kevin Keller, 2001]

What about
you and me? Relationships

What about
you? Responses

What are
you? Meaning

Who are you? Identity

Source: Keven L. Keller (2001), Customer Based Brand Equity Model; A Blue Print for Creating Strong Brands
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Salience (Brand prominence)

• How easily and often is the brand name evoked under
various situations and circumstances?
• To what extent is the brand top-of-mind and easily
recalled and recognized?
• How pervasive is brand awareness?
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Salience:
• Brand Awareness is distinguished in terms of two
dimensions:
– Depth
» How easily consumers can recall or recognize the brand.
– Breadth
» Range of purchase and consumptions situations in which
the brand comes to mind.
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Meaning
• Brand Meaning is made up of two major categories of brand
associations:
– Brand performance
» Relates to the ways in which product or service attempts to meet
customer’s functional and experiential needs (Intrinsic properties of the brand).
» Five important types of attributes/benefits:
• Primary/secondary features
• Reliability, Durability and Serviceability of the product
• Service effectiveness, efficiency and empathy
• Style & Design
• Price
– Imagery
» Extrinsic properties of the brand meeting psychological or social needs
(intangibles linked to brand)
» These intangibles include: User profiles, purchase and usage situations,
brand personality, history, heritage and experiences.
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Meaning (cont.)

• Thus a number of different types of associations related
to performance and imagery may become linked to the
brand.
• Brand associations developed can be categorized into
following three dimensions:
– Strength of association
– Favorability of the associations
– Uniqueness of associations
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Responses:
• It refers to how consumers respond to the brand, its
marketing activity and other sources of information i.e.
what consumers think or feel about the brand (similar to
attitude explained in previous model). Ultimately what
matters is how positive these responses are.
• These responses are categorized in to two:
– Brand judgement (Head) – Personal opinions and evaluations
with regards to the brand (brand quality, brand credibility, brand
consideration, brand superiority).
– Brand feelings (Heart) – Emotional responses and reactions
with respect to the brand (Warmth, fun, excitement, security, social
approval, self respect).
 Keller’s Brand Equity Model
[Kevin Keller, 2001]

• Brand Relationships
• This final stage of brand resonance refers to the nature of
relationship customers have with the brand and the extent to which
they feel that they are “in sync” with the brand.
• Specifically brand resonance can be broken down into four
categories:
– Behavioral loyalty (repeat purchase)
– Attitudinal loyalty (the “love” for brand)
– Sense of community (feeling of kinship or affiliation with other people
associated with the brand)
– Active engagement (strongest affirmation of brand loyalty occurs when
customers are willing to invest time, energy, money or other resources
into the brand)
• Brand relationships can be characterized in terms of two
dimensions:
– Intensity (refers to the intensity of the feelings)
– Activity (refers to how frequently consumers buy and uses brand and as
well as engages in other activities not related to purchase and
consumption)
 Conclusion
• The CBBE therefore suggests that buildings
strong brands involve series of logical steps:
• Establishing proper brand identity
• Creating appropriate brand meaning
• Eliciting the right brand response
• Forging appropriate brand relationships with customers.
• Achieving these fours steps involve establishing
six brand building blocks:
• 1) Brand salience, 2) Brand performance, 3) Brand imagery,
4) Brand judgements, 5) Brand feelings, 6) Brand resonance